Congratulations on winning the blue ribbon! That is just great!
I also would pursue them for the price of your backing material and the damage to your hand. I would make copies of all the bills you incurred getting treatment for it. Do not send them any of the real bills in case you need to hire a lawyer. I would also go after pain and suffering as the use of your hand is invaluable.
If you know an electrician, get him or her to check out the iron they sent you for safety hazards. Explain what happened with the last iron so they know what to look for. Put your safety first as you have a job to look after your family. Think about your own worth and the value of your house and anyone else who might suffer from the loss of it.You are a very valuable person and should proceed as such.
Congratulations again and best wishes that you get a decent settlement. Be very careful when using your new iron.